After opening the day on a positive note, stock markets in India have continued their momentum. Sectoral indices are trading on a positive note with stocks in the FMCG sector, metal sector and telecom sector witnessing maximum buying interest.
The BSE Sensex is trading up 289 points (up 0.9%) and the NSE Nifty is trading up 84 points (up 0.9%). The BSE Mid Cap index is trading up by 0.8%, while the BSE Small Cap index is trading up by 1%. The rupee is trading at 64.74 to the US$.
As per an article in the Economic Times, the rollout of the country’s most comprehensive indirect tax reform – the goods and services tax – has been positive and largely hassle-free.
The government has reported a smooth rollout for GST with no checks on state borders, timely customs operations and no major problems reported.
The government is now looking at a massive outreach to consumers as well as industry to clarify all issues and highlight the benefits of the tax regime.
GST, launched on 1 July, has subsumed a host of indirect levies like excise, service tax, and VAT.
Finance Minister Arun Jaitley said that people may face some difficulty initially as the Goods and Services Tax (GST)is rolled out, but in the long run the new indirect tax regime would help cut tax evasion and check price rises.
GST promises to transform India into a single common market, and many sectors will gain immensely from this transition.
Stocks from automobile sector and chemical sector are witnessing most of the buying interest today on the back of GST implementation.
In the news from commodity markets, crude oil extended its rally seen last week and is presently trading in the green. Gains are seen on the back of reports stating drilling activity in the US fell for the first time in months.
However, concerns regarding the rising output from OPEC despite the planned cut capped the above gains.
